DoD Awards $29.6M Contract to RAND Corp for Professional Services, Not Competed
Contract Overview
Contract Amount: $29,570,000 ($29.6M)
Contractor: THE Rand Corporation
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2024-10-01
Contract Duration: 731 days
Daily Burn Rate: $40.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CORE WORK FY23
Place of Performance
Location: SANTA MONICA, LOS ANGELES County, CALIFORNIA, 90401
Plain-Language Summary
Department of Defense obligated $29.6 million to THE RAND CORPORATION for work described as: CORE WORK FY23 Key points: 1. Significant contract value of $29.6 million awarded to a single entity. 2. Lack of competition raises questions about potential price discovery and value. 3. The contract spans two fiscal years, indicating a medium-term engagement. 4. Services fall under 'All Other Professional, Scientific, and Technical Services', a broad category.
Value Assessment
Rating: questionable
The contract's 'Cost Plus Fixed Fee' structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is challenging due to the broad nature of the NAICS code.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competitive bidding, it is difficult to ascertain if the government achieved the best possible price or if alternative solutions were explored.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The broad scope of services could encompass a wide range of activities, impacting various defense initiatives. The RAND Corporation's extensive research background suggests specialized expertise, but the necessity of a sole-source award warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Broad service category
- Cost-plus contract type
Positive Signals
- Award to established research corporation
- Long-term engagement (731 days)
Sector Analysis
The Department of Defense frequently procures professional, scientific, and technical services. Spending in this broad category can vary significantly, but competitive procurement is generally preferred to ensure cost-effectiveness.
Small Business Impact
This contract was awarded to The RAND Corporation, a large research organization. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a need for robust oversight to ensure the services provided are necessary, effectively delivered, and priced appropriately, even without competitive pressure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Broad and undefined service scope
- Cost-plus contract type
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to THE RAND CORPORATION. CORE WORK FY23
Who is the contractor on this award?
The obligated recipient is THE RAND CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2022-10-01. End: 2024-10-01.
What specific services are included under 'All Other Professional, Scientific, and Technical Services' for this contract, and how do they align with the Department of the Army's core mission requireme
The specific services are not detailed in the provided data. However, this NAICS code typically covers a wide array of non-classified professional, scientific, and technical services not elsewhere specified. For the Department of the Army, this could range from policy analysis and strategic planning to specialized scientific research or technical consulting, depending on the specific statement of work.
What justification was provided for awarding this contract on a sole-source basis, and were any market research efforts conducted to identify potential competitors?
The provided data indicates the contract was 'NOT COMPETED' but does not include the specific justification or details of market research. Typically, sole-source awards require a documented justification, such as the unique capability of the contractor or the urgency of the requirement, approved by appropriate authorities.
How will the effectiveness and value for money of the services provided by The RAND Corporation be assessed throughout the contract's duration, particularly given the cost-plus fixed fee structure?
Effectiveness and value will likely be assessed through performance metrics outlined in the contract's statement of work and regular progress reports. The 'fixed fee' portion of the contract provides some incentive for the contractor to manage costs efficiently, but the government must actively monitor expenditures and deliverables to ensure value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W91CRB21R0047
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1776 MAIN ST, SANTA MONICA, CA, 90401
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,330,404
Exercised Options: $36,330,404
Current Obligation: $29,570,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB21D0025
IDV Type: IDC
Timeline
Start Date: 2022-10-01
Current End Date: 2024-10-01
Potential End Date: 2024-10-01 00:00:00
Last Modified: 2025-03-06
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